Transition to Entrepreneurial Society Having Worldwide Impact

Special Report Characterizes Entrepreneurs as Global Heroes

 In its first ever review of the topic, The Economist has published a special report on entrepreneurship. Despite the worst global recession since the 1930s, entrepreneurism is experiencing a renaissance the world over and entrepreneurs are as optimistic and productive as ever.  

The report says that since the Regan-Thatcher era of the 1980s, governments of almost every ideology have embraced entrepreneurship.  Leading the entrepreneurial charge is America.  Between 1996 and 2004, on average 550,000 small businesses were created per month in the U.S., some of which grew very big, very fast.  For instance, Google grew into a multi-billion company in little more than a decade.  

According to the report, America seems to have found a transition to the entrepreneurial economy easier than its competitors because innovation is so deeply rooted in its history.  The U.S. was founded and settled by risk takers who would sacrifice old certainties for new opportunities.   Americans have an unusual belief that, even with all the recent challenges, their fate still lies in their own hands.   

One area where America outpaces the rest of the world is in net employment gains.  Among surviving startups after seven years, data indicates that American companies show employment growth almost three times greater than that of other nations.  

Another strength is the close relationship between American universities and industry.   America’s universities are seen as economic engines with adjunct science parks, technology offices, business incubators and venture funds.  As a case in point, through its work with Google, Stanford University gained about $200 million in stock when the company went public.  Half the startups in the Silicon Valley trace their roots to the university.

Although all economies around the globe have their unique set of strengths and challenges, the report concludes that we are witnessing the birth of an entrepreneurial society.  And this revolution is bringing about something remarkable:  the application of more brainpower in more countries and in more creative ways towards raising productivity and solving social problems.

Read the full story in The Economist: http://www.kauffman.org/uploadedFiles/Enterpreneurship/The_Economist_Global_Heroes_Reprint.pdf